Lightning Ventures Inc. announced that its wholly-owned subsidiary, Lightning Industries, has executed a binding letter of intent with COSI Energy Services for the purpose of establishing a joint venture. The JV will provide hot oil and storage tank cleaning services throughout Texas and New Mexico. Crude oils in storage tanks tend to separate into light and heavy phases. The heavier fluid, known as sludge, accumulates on the tank bottoms. Sludge not only reduces storage capacity but can also enter into pipelines disrupting downline production. The COSI/Lightning JV will utilize a unique application of proprietary chemicals and circulated hot oil to liquefy the sludge and recapture hydrocarbons. The accumulation of paraffin wax in pipelines, storage areas, and down-hole pumps constitutes major problems for production companies. The circulating of hot oil through these systems eliminates the paraffin, which results in increased production and lower maintenance cost. The JV will use Lightning Industries' trailer mounted hot oil unit to provide services throughout the area.